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Russia Slashes Welfare, Education Funding to Fuel Soaring War Spending by 2027
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CNBC TV18•29-09-2026, 22:24
Russia Slashes Welfare, Education Funding to Fuel Soaring War Spending by 2027
- •Russia plans significant cuts to welfare, education, and healthcare funding in its 2027 state budget to cover escalating military expenditures.
- •Defense spending is projected to hit 17.1 trillion roubles ($202.58 billion) in 2027, a 27% increase from original budgets and the highest since the 2022 Ukraine war.
- •Funding for social policy, education, and healthcare will decrease by 7%, 6%, and 6.8% respectively in 2027 compared to initial plans.
- •The "national economy" section, covering infrastructure and subsidies, will also see a 7.4% reduction in 2027.
- •Russia's budget deficit has worsened due to the war, necessitating fiscal reserve taps, increased borrowing, and tax hikes, with debt-servicing costs rising significantly.
Key Questions Answered
Russia plans to allocate 17.1 trillion roubles ($202.58 billion) toward defense in 2027, marking an increase of about 27% from the 13.5 trillion roubles initially budgeted.
Funding for social policy will shrink by 7%, education by 6%, healthcare by 6.8%, and infrastructure and agriculture spending under the national economy section by 7.4% in 2027.
Debt-servicing expenses are increasing due to elevated interest rates maintained by the central bank to control inflation, alongside the country's expanded borrowing plans.
